Ave Maria Mutual Funds is an investment management company catering to Catholic values-oriented investors. Founded in 2001, the firm avoids investing in companies involved in practices that go against Catholic teachings, such as abortion, pornography and contraceptives. This Ave Maria investments review will provide an in-depth assessment on its investment strategies, performance, fees, account minimums and more to help investors make an informed decision.
Ave Maria takes a values-focused approach to stock screening and selection
Ave Maria Mutual Funds was founded by Tom Monaghan, the billionaire founder of Domino’s Pizza, with the aim of aligning investments with Catholic values. The firm adheres to guidelines set by its Catholic Advisory Board when screening potential investments. Companies involved in practices like abortion, pornography, contraceptives, embryonic stem cell research and human cloning are filtered out. This allows Ave Maria to construct moral investing portfolios for values-oriented investors. However, the emphasis on ethics means the firm has a smaller universe of stocks to select from compared to conventional fund managers. Critics argue this could potentially limit returns, but Ave Maria’s long-term performance record suggests otherwise.
Solid long-term returns across multiple fund offerings
Ave Maria Mutual Funds offers 6 different mutual funds catering to various investment objectives, including equity, fixed income and allocation funds. Its flagship Ave Maria Growth Fund has delivered an average annual return of 8.66% over the past 15 years, outperforming the S&P 500. The Ave Maria Rising Dividend Fund has also done well with a 10-year average annual return of 9.66%. On the fixed income side, the Ave Maria Bond Fund has beaten its benchmark index consistently over the past decade. With its lineup of competitively managed funds, Ave Maria provides investors sound long-term investment options grounded in Catholic values.
Reasonable expense ratios but high minimum investments
As an established investment firm in operations for over 20 years, Ave Maria Mutual Funds has been able to keep its expense ratios competitive. Its equity and allocation funds carry expense ratios ranging from 0.92% to 1.26%, which are in line with similar funds-of-funds in the industry. However, Ave Maria’s required minimum investments are on the high side, with most of its funds requiring a $2,500 minimum to open an account. Subsequent investments also need to meet minimums of $250. Investors need to be prepared to commit a decent amount of capital to get started with Ave Maria. But the high minimums help the firm retain low expense ratios for decent value.
Strong alignment with Catholic values makes it a niche player
Ave Maria Mutual Funds has carved out a niche for itself as a leading provider of Catholic values-based investments. The firm’s disciplined approach to screening out companies with businesses at odds with Catholic teachings has attracted many faith-based investors over the years. However, this focus also limits the scope of investments available to its fund managers. Critics argue that Ave Maria is forced to invest in smaller and less optimal companies as a result. But its long-term performance track record shows that its managers are able to overcome these limitations and still deliver competitive returns across market cycles.
In summary, Ave Maria Mutual Funds stands out for its commitment to Catholic values investing and has built up a good long-term performance record across its lineup of funds. Values-oriented investors who require high minimum investments will find Ave Maria offers solid investment options aligned with their faith.